FAQ’S – Moratorium period – Loan against Securities

1. What is the relief RBI has provided for overdraft accounts under COVID 19- regulatory package?

RBI has permitted Bank’s to extend moratorium period for another 3 months, from June to Aug 2020, for recovery of interest amount. During the moratorium period, the borrower can choose to defer paying the interest amount. However, interest shall continue to accrue on your outstanding loan amount during the moratorium period and accumulated interest amount will get applied to your account 1st September 2020.

2. If I choose to avail of this moratorium period, how will interest be applied in the account?

If you choose to avail further extension of moratorium period, accumulated accrued interest amount from Mar 20 to Aug 20 will be debited in your loan account on 1st September 2020. Please note, moratorium is only a deferment of the interest amount to be repaid and not a concession or waiver of the interest due.

3. What is the process to be followed for getting the benefit of interest moratorium?

Interest will be applied in your account from June to Aug 20 on respective due dates including accumulated interest for the last 3 months (from Mar 20 to May 20). if you wish to further extend your interest moratorium from June to August 20, please SMS ‘LASIN’ to 5676757 on or before 31-May-2020 from your registered mobile number.  The Bank upon receipt of the SMS will provide the full moratorium benefit to the customer. However, the interest will continue to accrue on the loan outstanding amount.  

4. Will I be charged late payment charges for the moratorium facility extended by the bank?

Late payment charges will not be levied on your LAS account during the moratorium period.

5. What will happen after the relief period /moratorium is completed?

If you choose to avail further extension of moratorium period, accumulated accrued interest amount from Mar 20 to Aug 20 will be debited in your loan account on 1st September 2020.

6. Does this moratorium period affect my credit rating?

No

7. Can I OPT IN for the moratorium for one month and OPT OUT for another?

If you avail the moratorium, it will be applicable till the end of the moratorium period i.e.  Aug 2020.